Rock Bottom Tiles has developed a new customer-oriented business model. Rather than maintain a network of showrooms across the country, the business will now let customers choose several styles that interest them from an online site, and will ship samples of each of the styles to the customer to test in their home free of charge. Once they have settled on a tile choice, Rock Bottom will send a representative to their home to schedule installation. The company has determined that busy middle-class customers will value the convenience of the new model, which allow them to upgrade the look of their homes without spending time browsing showrooms. The new model will be created by selling the old showrooms and shifting resources to the new online site and regional offices for sales personnel. What question remains for Rock Bottom to ask in order to put its strategy into action?
A) Why does the business model create value?
B) What activities need to be performed to create and deliver the offerings to consumers?
C) How are the offerings to the customers created?
D) Who are the main stakeholders who will be performing the activities?

Question

Quizplus · Accepted Answer

Rock Bottom Tiles still needs to consider what activities need to be performed to create and deliver the offerings to customers. It has already answered why the new model creates value (convenience), how to create the new offerings (liquidate showrooms and shift resources), and who are the main stakeholders (busy middle-class homeowners). It has not yet considered the steps involved in establishing the new website or hiring and training its new in-home sales force.

Rock Bottom Tiles Has Developed a New Customer-Oriented Business Model